There is an old saying, "A horse is worth as much as someone will pay for it." This saying works for everything from cars and houses to sponsorships. A sponsorship is worth whatever a company is willing to give you. If you set the rate too high, you will not get any sponsors. If you set the rate too low, you will be doing a lot of work without much payoff. Follow some basic steps to properly set the value of a sponsorship.
List all of the exposure a company will be getting from the sponsorship. These can include a banner at the event, a page ad in a program, logo on a T-shirt and name mention during the event.
Add the individual costs of each benefit. The way to figure the cost is to take how much it will cost to produce the material, plus at least 40 percent of that cost added on for your time and effort.
Determine who you will reach during the event, and for what span of time. If around 18,000 people are going to be there, and they mostly range in age from 18 to 35, this is considered an attractive target market for many companies. Take these figures to an advertising agency and ask the agency to give you a market value.
Add together the benefits, cost and the target market value to determine the sponsorship value. Calculate how much it costs you to put on your event. Break down how many sponsors you will need to make it work. Have all of your figures on hand when you talk to companies about sponsorships. You might find that a single company will want to cover the whole bill just to be the main sponsor.
- Medioimages/Photodisc/Photodisc/Getty Images